Below is the press release about the sale of the Groupy assets to Yellow. In short Yellow brings to Groupy the marketing muscle required to expand throughout NZ, while the core Groupy team will hop over to keep things moving at internet speed.
Groupy was founded and led by Scott Kitney along with Andrew Hunt. I was a minority shareholder and advised on all sorts of things, including running the competitive exit process. Our legal advice was thanks to the excellent Sacha Judd at Buddle Findlay, who I recommend especially if you are a early stage company and contemplating a merger or acquisition.
MEDIA RELEASE 24 January 2011
Yellow® buys out Groupy
Yellow Pages Group® New Zealand (Yellow®) has just announced its purchase of http://www.groupy.co.nz, the group buying site that is proving to be a big hit with New Zealanders.
A re-launch of Groupy this week will see a brand new look for Groupy and the most exciting deals ever to be offered to consumers, starting with an amazing $1 Hell Pizza deal.
Groupy features unprecedented daily deals at a hugely discounted price – usually between 50 – 90% discount, which can be purchased online and redeemed with a voucher at a local merchant. It offers the ultimate unbeatable deal on great stuff to do, see, eat or buy in your city.
“Groupy’s a great new start up brand with a bit of cool factor”, says Yellow® Digital Director, Peter Crowe. “We’ll be introducing our advertisers to a new ad solution that will get them instantaneous and significant results if they feature in a Groupy unbeatable deal.”
“Yellow® talks to more local businesses in more places, more often, than any other media business in the country and we’ll be able to leverage the Groupy platform to provide outstanding deals for consumers as well as helping to grow our advertisers’ business”, he says.
The true power of Groupy’s bulk buying will be revealed as the week goes on with more extraordinary deals being offered, further cementing Groupy’s position as one of New Zealand’s biggest local daily deal sites.
Set up six months ago by a couple of Wellingtonian lads, the Groupy business has grown rapidly. Yellow® acquired the business amongst much competition late last year and will keep the founders at the helm to continue to operate the business.
Groupy founders Scott Kitney and Andrew Hunt, along with fellow shareholder and entrepreneur Lance Wiggs are creative, innovative guys with lots of zeal. They’re the talkers of ideas through to fruition and exactly the type of people we want in the Yellow® business”, says Mr Crowe.
According to Andrew and Scott, Yellow® is the perfect match for Groupy. “We have an exciting offering, a great brand and loyal customer base while Yellow® brings its distribution and connections to local merchants to the table and will allow Groupy to serve the entire country. Soon there’ll be no excuse for anyone in New Zealand not to have tried a discounted skydive, beauty treatment or great dining experience”, they say.
Groupy will feature different deals every day. By negotiating bulk purchases with businesses, Groupy is able to get heavy group discounts that save consumers lots of dollars and enable businesses to make large sales and drive lots of new customers through their doors.
This latest initiative is set to make the Yellow® network even stronger, delivering yet more digital innovation to consumers and customers alike.
Yellow® has over 300,000 business listings and more than one million total listings including residential, which amounts to a bank of businesses that will now have the option to join in and offer some unbeatable deals.
For further information please contact:
Danette Hunter Yellow Pages Group® Communications Manager 09 580 5183 027 485 2924 email@example.com
Yellow® was formed in 1988 and publishes the print, online and mobile directories for Yellow, as well as the White pages® and the Local Directory. Yellow® owns the 018® Directory Assistance Service, has a majority stake in 50-plus website grownups.co.nz, and publishes the Retirement guideTM and New Zealand tourism guideTM, an award-winning online tourism directory. Yellow® aims to help New Zealanders complete their missions and get the Job done®.